PhonePe joins hands with top insurers, launches low-cost motor insurance

Fintech major PhonePe, which also operates as an insurance broker, has launched motor insurance offerings in collaboration with leading insurers. The initiative aims to provide cost-effective online alternatives for new vehicle buyers, covering both two-wheelers and four-wheelers, as a more affordable option compared to traditional dealership insurance plans.

“This coverage aims to facilitate users in making informed decisions by comparing policy options and pricing via a seamless digital experience. At PhonePe, our goal is to simplify insurance buying and make the process transparent and hassle-free for users. With this launch, we hope to transform the way consumers purchase insurance for their new vehicles,” the company said.

PhonePe is offering two-wheeler insurance with an “Own Damage Cover” starting at just Re 1 through its app. According to the company, customers can save up to Rs 4,000 on two-wheeler insurance and up to Rs 40,000 on four-wheeler insurance compared to dealership prices.

Launched as a payments platform in 2016, PhonePe has since expanded into the distribution of financial products, including insurance, lending, and wealth management. As of March 2025, the company has 600 million registered users and a digital payments acceptance network spanning 40 million merchants. It processes over 330 million transactions daily, with an annualised total payment value (TPV) exceeding Rs 150 trillion.